Irish bakers have lodged a complaint with the European Commission about the 12.5 per cent VAT rate on bakery products. They maintain that jobs in the industry are under serious threat because the same products in the North are zero rated.

The complaint has been lodged by the Flour Confectioners and Bakers Association (FCBA) which says it has been forced to lodge the complaint because of the Minister of Finance, Mr Quinn's refusal to meet them on the issue before the Budget.